Galapagos (NASDAQ:GLPG) & Ardelyx (NASDAQ:ARDX) Financial Comparison

Galapagos (NASDAQ:GLPGGet Free Report) and Ardelyx (NASDAQ:ARDXGet Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Valuation and Earnings

This table compares Galapagos and Ardelyx’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Galapagos $243.58 million 7.48 $229.12 million N/A N/A
Ardelyx $159.11 million 10.88 -$66.07 million ($0.28) -26.57

Galapagos has higher revenue and earnings than Ardelyx.

Volatility & Risk

Galapagos has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, Ardelyx has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Profitability

This table compares Galapagos and Ardelyx’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Galapagos -26.25% -2.60% -1.46%
Ardelyx -41.36% -41.65% -23.08%

Analyst Recommendations

This is a summary of current ratings for Galapagos and Ardelyx, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Galapagos 1 3 0 0 1.75
Ardelyx 0 0 8 1 3.11

Galapagos currently has a consensus target price of $34.50, indicating a potential upside of 24.77%. Ardelyx has a consensus target price of $12.81, indicating a potential upside of 72.21%. Given Ardelyx’s stronger consensus rating and higher possible upside, analysts clearly believe Ardelyx is more favorable than Galapagos.

Insider & Institutional Ownership

32.5% of Galapagos shares are owned by institutional investors. Comparatively, 58.9% of Ardelyx shares are owned by institutional investors. 2.9% of Galapagos shares are owned by company insiders. Comparatively, 5.5% of Ardelyx shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Ardelyx beats Galapagos on 8 of the 13 factors compared between the two stocks.

About Galapagos

(Get Free Report)

Galapagos NV, a biotechnology company, develops medicines focusing on oncology and immunology primarily in the United States and Europe. The company's pipeline products comprise GLPG3667 that has completed phase 1b trial; GLPG5101, a CD19 CAR-T product candidate manufactured at point-of-care, currently in Phase1/2 trial in relapsed/refractory non-hodgkin lymphoma; GLPG5201, a CD19 CAR-T product candidates manufactured at point-of-care, currently in phase 1/2 trial in replapsed/refractory chronic lymphocytic leukemia; and GLPG5301, a BCMA CAR-T product candidate manufactured at point-of-care, currently in phase 1/2 in relapsed/refractory multiple myeloma. The company has collaboration agreements with Gilead Sciences, Inc.; and AbbVie S.à r.l. Galapagos NV was incorporated in 1999 and is headquartered in Mechelen, Belgium.

About Ardelyx

(Get Free Report)

Ardelyx, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally. The company's lead product candidate is tenapanor for the treatment of patients with irritable bowel syndrome with constipation. It also develops XPHOZAH, which is in Phase III clinical trial to reduce serum phosphorus in adults with chronic kidney disease (CKD)on dialysis, or hyperphosphatemia; RDX013, a potassium secretagogue, for the treatment of elevated serum potassium, or hyperkalemia, a problem among patients with kidney and/or heart failure; and RDX020, for adult patients with metabolic acidosis, a serious electrolyte disorder. The company has agreements with Kyowa Kirin, Fosun Pharmaceutical Industrial Development Co. Ltd., and Knight Therapeutics, Inc. for the development and commercialization of tenapanor in their respective territories. The company was formerly known as Nteryx, Inc. and changed its name to Ardelyx, Inc. in June 2008. Ardelyx, Inc. was incorporated in 2007 and is headquartered in Waltham, Massachusetts.

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